2004 (7) TMI 455

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... der]. The appellant s appeal is directed against the order-in-original, whereby the demand of duty confirmed against the appellants by the Joint Commissioner was upheld. The demand for Rs. 4,67,125/- was confirmed against the appellants on the ground that there was a shortage of physical stock of the inputs in the appellants factory, compared to the stock figuring in the Modvat record. This .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... there would not have been any case for denial of credit since the loss of inputs in the process does not require reversal of credit of the duty paid on the quantity lost in process. It is only on account of a system of maintaining records, showing the actual quantity issued for production that the loss in the physical stock is visible. In the absence of any tangible evidence of removal of inputs o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... that, as against the receipt of inputs worth Rs. 24 crores in the year 1993-94, duty on the quantities lost has been worked out to Rs. 60,000/-. Though this comparison is in value terms, it does establish the point of the shortage being a small fraction, the products being volatile in nature, loss due to evaporation is not unlikely. Hence to build up the case of clandestine removal of inputs, some .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X